RBA governor expects 3% economy growth

The head of the Reserve Bank believes Australia will reap the benefits of a pickup in the global economy.

Dr Lowe has told a parliamentary economics committee on Friday he expects the economy to grow by around three per cent this year and next.

The improvement in the global economy, low interest rates and depreciation of the Australian dollar were creating a better business environment, he said, though he expects a recent lift in commodity prices to make some retreat.